China Independent Refiners Facing Tight Crude Import Quotas
In H1, 2020, the international crude oil prices were at low levels, while China’s crude oil demand recovered quickly. The oil refining profits at China’s independent refineries reached high levels, and these refineries were active in crude oil processing. Therefore, the crude oil import quotas awarded to them were consumed rapidly.
According to SCI’s statistics, the first three batches of crude oil non-state trade import quotas had been issued with the total volume at 184.55 million mt, accounting for 91% of the 2020 total allowable quotas. Therein, the third batch of crude oil import quotas were issued on July 9, which was earlier than the release time in past years.
Accordingly, the independent refineries are now facing tight crude oil import quotas, promoting the demand for the feedstock of secondary processing units, and China’s import volume of cutback asphalt, mixed aromatics, light cycle oil, etc. increased significantly.
Generally, the crude oil import quotas are issued in two batches based on enterprises’ last year crude oil import status from January to October and from November to December. Moreover, MOFCOM will adjust the quotas based on enterprises’ actual crude oil import volume, operating demand, newly qualified enterprises, etc.
SCI reckons that there is still possibility that the MOFCOM may increase the crude oil allowable import quotas in 2020. However, these quotas are likely to be awarded to Xiamen Tongqin Trading, Xiamen Xiangyu Logistics Group and Fujian Minhai Energy International Trading because these three enterprises were qualified for crude oil imports by MOFCOM recently.
